The only difference between this limited international coverage endorsement and the preceding one dealing with income loss, is its references to extra expense and definition. In this endorsement, extra expense means the necessary expenses the named insured incurs during the period of restoration, which begins with the date of direct physical loss or damage from a covered cause. Coverage ends at the same time as does the above Loss of Business Income Endorsement.
The extra expenses, furthermore, are those that the named insured would not have incurred had there been no direct physical loss or damage to the premises of any described “dependent property,” as described in the endorsement, from a covered cause of loss to (a) avoid or minimize suspension or continue operations, or (b) minimize the suspension if the named insured cannot continue operations.
For purposes of the ISO forms, any physical damage or destruction from the tsunami would have to come from flood or other water damage coverage. The reason is that both of the ISO Earthquake and Volcanic Eruption Endorsements CP 10 40 and CP 10 45 specifically exclude loss or damage caused directly or indirectly by tidal wave or tsunami, even if attributable to an earthquake or volcanic eruption.
Flood coverage, therefore, would have been necessary either from the National Flood Insurance Program (NFIP) or the ISO Flood Coverage Endorsement CP 10 65. This latter endorsement is commonly used as “wrap around” coverage to the NFIP. It can also be used with the Basic, Broad and Special Causes of Loss Forms to obtain coverage for loss from flood. Flood coverage would have been necessary because the water exclusion in all of the ISO causes of loss forms specifically exclude tidal wave and tsunami.
There are some independently filed property policies, modified with enhanced endorsements, that are broad enough to cover contingent business interruption when the territorial scope is worldwide. Depending on the covered causes of loss, it may be possible to obtain coverage stemming from